Economic forecasts by Powell – the Swiss stock market slips after Fed statements clearly euphoria from in the loosening phase of the Corona of the crisis was over, said a Central banker Jerome Powell. In addition, he warns again of rising infection rates before a new stock market sell-off.0 comment gloomy predictions of A “long and uncertain path,” spent in front of the US economy. Photo: Keystone

On the Swiss stock exchange on Thursday significantly downward. The trigger is very sobering statements of the US Central Bank, the Fed, the night before, according to traders. The benchmark index, the SMI slid to the commencement of trading significantly below 10’000 points and is fighting in the morning to the middle of the last week won back his brand.

The Swiss benchmark index, the Swiss Market Index (SMI) is trading at around 10.20 PM 1.5 percent in the Minus 9’995 points.Source:

Fed Chairman Jerome Powell had spoken on the eve of a “long and uncertain path”, in the lounge in front of the US economy. These statements stand in sharp contrast to the hopes for a quick and “V-shaped” recovery in the economy. Overall, the euphoria tickets in the loosening phase of the Corona-crisis evaporated. Traders also referred to the news about re-growing infection rates in Parts of the USA. A second wave of Infection would lead to a renewed stock market sell-off, it was said.

The Swiss benchmark index, the Swiss Market Index (SMI) is trading at around 10.20 PM 1.5 percent in the Minus 9’995 points. After on the eve of the US-Dow Jones index closed more than 1 percent had lost, it also goes to the other European stock exchanges clear down, the German Dax Index lost 2.3 percent and the French CAC40 is 2.7 percent.

The Swiss franc serves as a safe haven

The prospect of long-lasting low interest rates again, the stock from the financial sector under pressure. Thus, the share of the CS SAG of 4.3 percent, the shares of Julius Baer, Swiss Life, Zurich, UBS or Swiss Re, with charges between 3.1 and 3.9 percent.

But also in economy-sensitive titles, such as AMS (-6,2%) or Adecco (-3.9%) and fall back reinforced. They had recently benefited selectively from rotation in the market in the economy-sensitive stocks. The indices are still lower, due to the two heavyweights, Nestlé (-0.4%) and Roche (-0.1%) and the significantly better than the market.

the Swiss franc is in Demand – as in most cases, in times of uncertainty – while. The Euro-franc exchange rate fell temporarily below the mark of 1.07, after he had been quoted last week in a phased manner over to 1.09.

(SDA / step)

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